2 Pages Posted: 15 Jul 2012 Last revised: 10 Oct 2012
Date Written: October 2, 2012
After the financial tsunami, a lot of criticisms were raised against awarding share option to senior management because share option enticed senior management taking too much risk. This paper counter-argues these criticisms and espouses the goodies of awarding share options to management to an appropriate level.
Keywords: share option, risk, loss aversion, behavioral economics
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